Build your cash pile today to pay for university tomorrow

Real savings can be made by paying off the mortgage or buying blue-chip shares

I have been saving my child allowance in Post Office savings products since my first child was born 10 years ago. I now have three children, which means €408 a month goes into these accounts. Given the cost of third-level education, I’m wondering if this is the best place for the money since I get an annual return of only about 2.4%.

When you started saving, the child allowance was €30 a month, instead of today’s payment of €125.60 (for the first two children and €157.30 for every subsequent child).

Even taking into account the rise in incomes over the decade, this is a significant increase in the tax-free benefit. Your cautious approach may not have been the most astute back in the mid-1990s when stock-related investments were outpacing returns from deposit accounts, but your approach has paid off in that your capital and modest returns have not suffered the